Canada's Algoma Steel Q4 revenue misses estimates

Overview

• Canada steel plate producer's Q4 revenue fell year-over-year, missing analyst expectations

• Q4 adjusted EBITDA loss widened

Outlook

• Algoma expects annual raw steel production capacity of about 3.7 mln tons post-EAF transition

Result Drivers

• TARIFF IMPACT - Co said 50% U.S. Section 232 tariffs restricted access to U.S. market, reduced shipments, and drove domestic prices lower

• EAF TRANSITION COSTS - Accelerated shift to electric arc furnace steelmaking led to higher depreciation, stranded inventory charges, and severance costs

Company press release: ID:nGNXSt629

Key Details

Analyst Coverage

• The one available analyst rating on the shares is "hold"

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